East Providence winds up with a $5 million surplus for FY15

Audit shows city ended another fiscal year in the black

By Mike Rego
Posted 6/26/17

EAST PROVIDENCE — Another fiscal year audit in the books, another solid performance financial performance recorded for East Providence.

The City Council, at its Tuesday, June 20, once again …

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East Providence winds up with a $5 million surplus for FY15

Audit shows city ended another fiscal year in the black

Posted

EAST PROVIDENCE — Another fiscal year audit in the books, another solid performance financial performance recorded for East Providence.

The City Council, at its Tuesday, June 20, once again heard very good news about the municipality’s standing during a review of the Fiscal Year 2015 audit recently completed by the accounting firm of Parmelee Poirier & Associates.

As they did just over a year ago, City Finance Director Malcolm Moore and Jo-Anne Newton, a CPA for PP&A, led the Council through the specifics of the audit, which for fifth consecutive fiscal year ended with East Providence in the black, this time to the tune of $5 million.

“In all cases you’re on the positive side,” Ms. Newton said, expressing her pleasure with the overall numbers.

Mr. Moore cautioned the surplus number was a “bit misleading” because some of that money has already been earmarked for capital improvements and potential synchronization of the city’s fiscal year with that of the state.

The city’s fiscal year runs November 1 of the previous year to October 31 of the ensuing year. Ms. Newton, saying she did not have an opinion either way on the topic of synchronization, noted the delay in reporting out the audit annually is due to mostly to East Providence’s fiscal year not matching that of the state (July 1-June 30), which makes it difficult to get the necessary information in a timely fashion.

In the previous four years the city, which in late 2011 fell under state oversight, had surpluses of $435,000 in 2011, $8.7 million in 2012, $3.5 million 2013 and $3.5 in 2014. The $8.7 million in '12 was aided significantly by the payout the East Providence Police Department received in asset forfeiture money earned for its part in the federal Google pharmaceutical case.

The cumulative balance of revenues received by the city has steadily risen since FY12 when that figure was $.78 million. In FY13 it was $10.8 million, FY 14 $13.2 and for the just completed FY15 audit $15.3 million.

“The line is going straight up. There are no peaks and valleys, which is what you want,” Ms. Newton said. “That’s a good thing. You’re controlling expenses and gathering as much revenue as you can.”

Taking into account such things as assets vs. liabilities, cumulative fund balances, unassigned funds, annual retirement contributions (ARC), other post-employment benefits (OPEB) and the budget reserve fund, commonly referred to as the “Rainy Day Fund,” East Providence’s finances remain on a sound path.

Ms. Newton ran through several figures, citing how the city fully funds its ARC and OPEB payments as a positive. As well, she noted the city has $106 million in assets vs. $36 in liabilities. Mr. Moore cited the municipal side finished FY15 with an unassigned fund balance of $14.3 million, of which $10 million is devoted to the Rainy Day Fund, while the schools ended with a balance of $6.8. He contrasted that with the $50,000 deficit both sides finished with only five years.

Ms. Newton added, “It says a lot about the fiscal responsibility and accountability” of the administration and elected officials have shown since fiscal oversight was returned to local authorities by the state-appointed Budget Commission. She continued, the city deserves “kudos for its policy and decision making.”

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Mike Rego

Mike Rego has worked at East Bay Newspapers since 2001, helping the company launch The Westport Shorelines. He soon after became a Sports Editor, spending the next 10-plus years in that role before taking over as editor of The East Providence Post in February of 2012. To contact Mike about The Post or to submit information, suggest story ideas or photo opportunities, etc. in East Providence, email mrego@eastbaymediagroup.com.